I moved to the US in May 2012. I had made some investments in Indian stock markets. Since I did not make any significant profits in 2012 and 2013, I never paid taxes on that. In 2014, I have made some good profits by selling some of my stocks. Now my question is, how to pay taxes on these capital gains?
My tax preparing agent is suggesting that since the stock brokers in India does not have any US state ITINS, it becomes complicated to file that income along with US taxes. He says, I can file those taxes separately in India.
Some of my friends have said that, it is mandatory to pay tax in US for the capital gains in India. How complicated is it to include Indian capital gains along with US taxes? Did anybody face similar situation? Please suggest what is the best way to file these taxes. Also the financial years are different in India and US. I'm totally confused on how to file my taxes. Please help.
Also on a separate note, the demat account that I have in India is not an NRI account. Since I was not sure how long I would be in the US, I never converted my account to NRI account. Is it required to convert my account to NRI account?